GST COUNCIL (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     9th October 2023        
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Context: The GST Council recently exempted unbranded flour with 70% millets from taxes and reduced GST on molasses from 28% to 5%, providing significant relief to farmers, especially in Rajasthan, Gujarat, Maharashtra, and Madhya Pradesh.

GST Council

  • 101st Amendment Act of 2016: It also referred to as the 122nd Amendment Bill, laid the groundwork for the introduction of GST.
  • Article 279-A of the Constitution: The GST Council functions as a collaborative platform involving both the Central and state governments.
  • Executive Authority: Article 279-A grants the President the power to establish the GST Council through an executive order.
  • Composition: Union Finance Minister (serving as the chairperson) and the Union Minister of State (Finance), representing various states.
  • Recommendations and Model Laws: Article 279 empowers the GST Council to provide recommendations to both the Union and the states on crucial GST-related matters, encompassing the taxation of goods and services.


  • About: Millets, classified as small-seeded grasses, are cereal crops renowned for their high nutritive value.
  • Types: Sorghum, Pearl Millet, Ragi, Small Millet, Foxtail Millet, Barnyard Millet, Kodo Millet, and various others.
  • Major Producers: Rajasthan, Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Maharashtra, Gujarat, and Haryana.


  • It is a viscous substance resulting from refining sugarcane, or sugar beets into sugar.
  • Molasses vary in the amount of sugar, method of extraction and age of the plant.
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